German 10 year yield lowest in over a week

German 10-year bond yield retreated to the lowest in more than a week, a development that caused yield curve to be flattened on Wednesday.

After a brief break, the government yield curves across developed markets are back to flattening over the last couple of successive sessions.

This low reflects concern that central banks, particularly the Bank of England, might commit a fiscal policy error if they are pushed tighten policy too early by price pressures on the back of high inflation levels that possibly will prove temporary.

German 10-year yield, a benchmark for the European Union, fell to the lowest in more than a week at -0.168%, falling alongside U.S. Treasury and British gilt yields, and was down 4 bps. It was set for its biggest daily fall in nearly two weeks.